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Growth effects of leisure tourism and the level of economic development

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  • Chung-ki Min
  • Taek-seon Roh
  • Sangmee Bak

Abstract

This study examines (1) whether leisure tourism can contribute to economic growth and (2) if it does, whether its growth effects are constant across levels of economic development. Leisure tourism differs from business tourism in the causal relation with economic growth. In addition, the natural and heritage-related resources for leisure tourism are limited and not reproducible. This notion has a significant implication for the relationship between the growth effects of leisure tourism and the level of economic development. Thus, the current study focuses on leisure tourism and controls for the effects of business tourism. As an economy grows, the growth effects of leisure tourism are expected to diminish due to a lack of continued productivity improvement in the tourism industry. The empirical findings in this research reveal that leisure tourism contributes to economic growth at an early stage of economic development, but its contribution becomes weaker as the economy develops.

Suggested Citation

  • Chung-ki Min & Taek-seon Roh & Sangmee Bak, 2016. "Growth effects of leisure tourism and the level of economic development," Applied Economics, Taylor & Francis Journals, vol. 48(1), pages 7-17, January.
    • Handle: RePEc:taf:applec:v:48:y:2016:i:1:p:7-17
    DOI: 10.1080/00036846.2015.1073838
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    Cited by:

    1. Azmat Gani, 2022. "Using a consumer choice model to explain the effect of the newly developed oxford COVID-19 government stringency measure on hotel occupancy rates," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(6), pages 4313-4333, December.
    2. Llorenç Bagur-Femenías & Jordi Perramon & Marc Oliveras-Villanueva, 2019. "Effects of Service Quality Policies in the Tourism Sector Performance: An Empirical Analysis of Spanish Hotels and Restaurants," Sustainability, MDPI, vol. 11(3), pages 1-13, February.
    3. Azmat Gani & Michael D. Clemes, 2017. "The main determinants effecting international visitor arrivals in New Zealand," Tourism Economics, , vol. 23(5), pages 921-940, August.
    4. Xia Wang & Danli Liu, 2020. "The Coupling Coordination Relationship between Tourism Competitiveness and Economic Growth of Developing Countries," Sustainability, MDPI, vol. 12(6), pages 1-18, March.

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